Twesh Mishra

India is planning a second phase for its production-linked incentive programme. This new phase will support high-performing sectors and reduce focus on low-yielding ones. Companies previously excluded will be encouraged to apply for these new schemes. Revisions to existing schemes for sectors like textiles are also being examined. The government aims to make these manufacturing policies more industry friendly and effective.

Indian exporters face delays due to congestion at Singapore and Colombo ports. A surge in China-US trade is reducing container availability globally. Freight rates have significantly increased for major shipping routes. Shipping lines are citing container shortages and delaying bookings for exporters. This situation impacts Indian trade and causes increased transit times.

Congestion at the transhipment ports of Singapore and Colombo is causing a spillover effect in India, with exporters citing a lack of enough feeder vessels.

The central government is poised to restrict state authority concerning taxation on mining activities. This initiative aims to enhance the national viability of mining operations, as previous overly burdensome taxes deterred mineral extraction. Following a 2024 Supreme Court ruling that permitted states to add taxes, the proposed legislation aspires to introduce a standardized and fair financial framework for the mining industry.

Electric two-wheeler subsidies are extended by the government until March 2028. An incentive of up to Rs 5,000 per vehicle will continue under the PM E DRIVE scheme. The government has provisioned an additional Rs 1000 crore for electric two-wheeler subsidies. India has already surpassed its electric two-wheeler sales target under the scheme. Electric three-wheelers no longer require these government incentives.

Indian Railways will resume supplying passenger coaches to Bangladesh after a decade. The Rail Coach Factory in Kapurthala is dispatching a 19-coach rake for Bangladesh Railway. This shipment includes AC sleeper, AC chair, and non-AC chair cars. The project is funded by the European Investment Bank and awarded to RITES. These coaches feature crashworthy design and a 415 V electrical system.

Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, curbing states' powers to impose taxes and cess on mineral rights, with mining minister G Kishan Reddy citing the need for a uniform fiscal framework. RSP MP Premachandran N K opposed the move as unconstitutional, arguing land taxation is exclusively a state subject.

Parliament approved the Mines and Minerals Amendment Bill, 2026, on Thursday. This legislation empowers the central government to regulate state taxes on mineral rights. Excessive fiscal burdens were cited as a reason for the new restrictions. The move follows a Supreme Court verdict allowing states to levy additional mining taxes. A uniform fiscal framework will guide future mining tax impositions across the nation.

Mitsubishi is nearing an exit from NTPC's Farakka power project. The Japanese firm will compensate NTPC with ₹851 crore for the project. This agreement follows earlier compensation demands and offers between the two companies. Significant work remains incomplete on the flue gas desulphurisation equipment installation. The project was initially estimated at ₹1,000 crore when awarded six years ago.

The project, when awarded six years ago, was estimated at ₹1,000 crore, of which around 20 per cent was paid upfront by NTPC.